ROI Calculator
Calculate Return on Investment (ROI) and annualized ROI for your investments.
Investment Gain
$5,000
ROI (%)
50.00%
Annualized ROI (%)
8.45%
How to Calculate Return on Investment (ROI) & Profitability
Return on Investment evaluates the efficiency and profitability of an investment relative to its initial cost.
1Basic & Annualized ROI Formulas
Basic ROI (%) = [(Net Profit) ÷ (Cost of Investment)] × 100
Net Profit = Final Investment Value - Initial Investment Cost
Annualized ROI (%) = [(1 + Basic ROI)^(1 ÷ Years) - 1] × 100
Frequently Asked Questions
Annualized ROI measures the average geometric annual growth rate of an investment, allowing fair comparison across different time periods.
Yes, a negative ROI indicates that the investment incurred a net financial loss relative to its initial outlay.